We are a tech company. This is very important, right? We are making vehicles, but we are a tech company. Therefore, we are not bound by legacy thinking. Very important to know. So we build software-defined vehicles for the world's largest fleets. Okay? So what that means in essence is we have a full by-wire technology. Okay? This is real-world. It's, to the best of our knowledge, we're the first ones ever to certify for sale in the U.S. a full by-wire vehicle, which means a drive-by-wire, brake-by-wire, and steer-by-wire. Okay? We'll get into what the advantage of that is as we go through the presentation. The other one is by competing and not competing. Basically, we're not looking to take over what legacy OEMs are doing. We're looking to work with them and improve the vehicles and transition to electric mobility within the classes. Okay?
And then most recently, it's been in the news. We have established a partnership with Motherson. So Motherson is a very large automotive supplier, $17 billion in sales. They operate foreign facilities in over 40 countries. And the idea is with them, you know, that number one, they're an investor, so that we have vested interest, but they're also resources for us, right? So they proven supply chain stability. We have extra resources for manufacturing, and we can scale with demand. Okay. A couple of things we wanna talk about here. So what we like to term in our industry is, especially for startups and new companies, is what we call the valley of death. Okay? So what the valley of death is, essentially, is you dig yourself a hole, and you can never get out of it, right? So these happen in two folds.
Number one, in the technology itself. So this is not having the right product at the right time, the right focus, or a real value prop. So a lot of times, you'll get startups. They'll get hung up on their own product, but they didn't listen to the customer. They didn't listen to the voice of the customer. It's not what is needed at the right time. So we'll get into what we've done there. And then the other huge one is when you do have that, how do you get to production, right? So a lot of things we'll talk about with us is we have a different outlook, right? So for example, the REE technology is what we focus on. For the rest of it, we partner with other companies. So, we're not prematurely investing in factories and infrastructure.
We're. We don't have capital sitting idle right now. We haven't done that. We're not over-investing. We can actually break even on a material margin basis at unit economics on very low volumes compared to traditional OEMs. And, and, and from the acquisition cost of the customer, we essentially have almost nothing. Okay? Okay. Software-defined vehicle powered by REE. Let's talk about that. So one of the reasons I came to REE after being with Tesla was it's the same type of approach, right? Most of the trucks that are out there now, if you look at it, they're essentially taking what exists and putting e-axles and batteries on there, but you're not really improving the product. You're basically saying, "Buy this 'cause it's electric." Same thing where, where in Tesla came out. Tesla's idea was to transition the world to sustainable transportation by making a better vehicle.
So the idea was new architecture allowed you a safer vehicle, more technology, spaciousness. Like today, most people, they want a Tesla, right? They want that. Same thing with REE. Because we have the REEcorner technology, which is here in the corner, so the idea is, like I said earlier, it's brake-by-wire, steer-by-wire, and drive-by-wire. So if you look at the corner itself, we have all of those main systems in the corner. When we produce the corner, it's one corner, front left, front right, right? So from a manufacturing standpoint, we build one corner. When it gets on the vehicle, we assign it to the area of the, of the vehicle so it knows that. And then what that allows us to do is a lot of different value propositions. So for example, flexibility.
In theory, we could electrify anything with the corner system, but you need to start somewhere. So what we've done is we are launching what we call the P7, which is ideal for Class 3, 4, and 5 last-mile, mid-mile delivery vehicles, right? A couple of reasons. This class is very well suited for electrification, right? You don't have range anxiety because most of the vehicles drive during the day and park at night. With the corner itself, we actually have changed the build of the truck, right? We get a lower floor. We get a much more spacious cab, higher visibility, larger demographic of driver that you can hire, right? More volume, and what's on the back, you get more volume. You can get into tighter things in the city because of the four-wheel steer, right?
So we've looked at this from a, instead of saying, "Here's an electric truck," we're basically saying, "Here's a better truck, and by the way, it's electric." Okay? The other one is around TCO. So, a couple of things for TCO, right? So total cost of ownership, important for fleets, right? So because we have one corner, it's essentially one part number. So if a truck comes in and you can't diagnose it quickly, you can actually take a corner off, put on a new corner in less than an hour, get the truck back on the road, and then worry about repairing the corner later, right? So the idea is you get the vehicle back on the road because we have four motors and not one or two, we get a much higher regen, so higher efficiency, so smaller pack for the size of the vehicle.
Because of the spare parts and things like that, there's a lot less inventory in there. So the idea is the total cost of ownership is much lower than a traditional vehicle, all right? And then all that's made possible by having the REEcorner and the x-by-wire system. Okay. Like we said earlier, we wanna complete and not compete. So the go-to-market strategy, we really have three options for the way we were going to market. So I like to equate this to similar to when Android software came out. So today, what we have is we're launching again. On the far right is our vehicle. So this is the P7.
It's a full cab chassis, which then we will build the truck, and then that can go to any upfitter and whatever the work end that the customer needs can go in the back. It can be a box. It can be a stake bed. It can be a refrigerated, you know, container. It can be a flatbed. Whatever is needed, it can go on the back. The idea is, you know, we have this advanced technology, but you have to bring it to market. So the idea is, this way that we're bringing our truck to the market to get it out there. Same like when Google came out with Android, they needed a phone to put it on, right? But nowadays, you look almost, you know, if you don't have Apple, you pretty much have Android, right?
So the idea is we come out with this, our vehicle now, get the technology to the market. Then we'll be working with OEMs in the future to either integrate our platform. So the platform is used when you need to put similar to a UPS truck or a FedEx truck where you put the breadbox on top. And then ideally, the corner itself can be integrated in any OEM's vehicles in the future. Okay? So it's kinda the same thing around the software of when Android came out is get it to market and then look at actually working with everyone else to integrate the technology. Like I said earlier, this is real. These things are out. They're legal for street use. So just a couple of examples of the truck. So this is a stake side. It's in New Jersey right now.
Here it's driving down the highway. This is a KUV body. Again, we're working with also some of the biggest upfitters in the country. This is Knapheide. I think, most of you've seen trucks driving around and see Knapheide on the back. That's their KUV body on our vehicle driving around California. Penske is everyone knows Penske's largest fleet in the world. It's a huge advocate of our technology because of the value prop. Lower floor, you know, easier for it to get into the different city streets. The total cost of ownership. So this is a, the Penske vehicle driving around doing demos in California. This is another one of our vehicles. So you can see here, it's actually different. We have the low floor, of course, but obviously, some people wanna still do the dock height. So this is actually a raised box.
You can see how it's, it's high, and you actually get, because of that, you get the storage underneath and the increased volumetric efficiency on the back. Same here again. Drive around Maryland. This is Wisconsin, Massachusetts. Okay. Okay. So another thing we've done different, is around the total cost of ownership, or sorry, around the customer acquisition of, of our customers, right? We're not doing direct sales. Again, the industry is transitional, right? So what we've done is instead of us trying to sell directly and go to the customers, what we've done is it's twofold, we've basically, partnered with the largest dealers in the country, right? So the idea is it's, it's twofold. We're working with them. They bring the customers to us. That way, we're not having to set up infrastructure, brick and mortar, all the regulatory.
And on the other side, they also we train them to do our sale, our service side. So the idea is we're training them how to swap the corners, how to update the vehicles so they get the return on that. So instead of fighting the dealers that exist, we're actually working with them and hand in hand. So this allows us to be our acquisition cost to be essentially zero. Another huge kudos to our technology is we have basically a project with Airbus. So everyone knows that, as we said, our vehicles are drive-by-wire, right? So is an airplane. But an airplane's only drive-by-wire while it's in the air. Once it's on the ground, it's manual controls.
So since our vehicle's the closest to an airplane, Airbus is actually using our vehicle to teach their plane how to be autonomous on the road, all right? So on the tarmacs and on the runway to safety. 'Cause most of the incidents with airplanes that I can think you guys see happen on the runway when they clip something or things like that. So this is something we're very proud of. Airbus has chosen us as the only vehicle to help with this issue with driving on the tarmac. Okay. So again, we'll go back to the market. So of course, the REEc orner and the REEp latform, we're in discussion with major OEMs right now about integrating that into their vehicles, getting in their development cycle.
And then for the platforms that we already have and the truck itself, currently, we have $60,000 of an order book on those vehicles already. We're looking to go production. We'll start production in the next year. This is an increase of 15% quarter over quarter. Okay. So a little bit about the strategy again. What we've done now is we will manufacture our corners in our U.K. facility. We also have a facility in the U.S. that we can do that, but we owe it to our shareholders to not over-invest, like we said. So we have a line in the U.K. that can make up to 40,000 of these per year. Until we get to that magic number, we'll be manufacturing in the U.K. They ship very nicely in a container, and we bring them over here.
And then U.S. production, again, we've partnered with Motherson. We'll talk about them a little more on the next slide. But to build the vehicle itself, we've partnered with Roush. So I think most people know Roush is one of the premier contract manufacturers in the U.S. Again, instead of us investing in a large assembly facility, we're using one that already exists, right? That way, we don't have to worry about the idle investments. Okay? So on top of this, Motherson themselves as a strategic partner investor will be supporting us, on both the manufacturing and supply chain at both locations. Okay. A little bit more about Motherson 'cause this is something we're very proud of. Again, large global automotive manufacturer and supply partner, huge tier one.
And the idea is that they have invested in us and as a strategic partner will allow us to basically strengthen our supply chain. They're gonna support assembly of the corner and the trucks, and they expand our outreach to global OEMs that they already work with. Okay. All right. So just a little bit of a summary here. So, technology innovated, validated, and certified, right? Large number of patents, 180. Ground-up architecture enables a new type of vehicle that actually creates value. And again, it's designed for limitless vehicle types. It's very important there. We can adapt this technology to anything. Again, we're very focused right now, right? We're on this part of the market that makes the most sense.
But once we get the technology out there and moving, the idea is that we can expand indefinitely and adapt to any type of vehicle, okay, from an Ops standpoint. Strategic partner, you know, they'll oversee manufacturing and support our supply chain. We partner with Roush, of course, and the capacity for the corner has been validated. A couple of points here that's for sure important is to see companies like Motherson and Roush partner with REE. It's a testament to our technology. You know, they also believe in it. They see the value. They see where it can possibly go from there and then where the value prop comes from. Okay. From the business side, $60 million in order book right now. Strong potential in collaboration with all the OEMs. We have one of North America's largest sales and service networks.
Again, it's important to that 'cause that's how we get the product out there, how we service it, but also around the acquisition cost, right? And then programs are ongoing with Penske, largest fleet in the world. U-Haul, as we all know, again, they love the technology based off the increased demographic of driver, low floor, and many other of the large fleets. And then from the finance side, you know, over $100 million in cash equivalents. And we're basically secured to get positive unit economics and strong, long-term shareholders. We have M&G, 16%, and then, of course, Motherson at 19%. Okay? The key here too is, at this point is, we get positive unit economics in the low hundreds of vehicles.
So because we have not invested in factories and large amount of CapEx, we're not sitting where we have to recoup that, right? So from the low hundreds, we're material margin on parity or in line with that. And then in the low thousands of vehicles, we are pushing for positive EBITDA. Okay? So extremely important. We're not like a you know, if you look at some of the other EV companies out there, they've already made tens of thousands of vehicles and still losing money on each one because they're trying to recoup the investments of the factories and building their own batteries, right? Building their own drive units, right? We're not doing this. We're buying them from established firms already. Okay?
So again, the idea here is it's, we're very financially focused and disciplined, and that's one reason why we're in the position we are today. Okay. So with that, again, thank you very much. Any questions? Yes
I'd like to know about the numbers of, you know, profitability, what's the path towards getting that income positive on a GAAP basis, and even what current cash burn is? I know it's going a lot in that way.
Perfect. I have the finance team with me for these types of questions, and they can help. Yes.
Hello. Hi, my name is Michael. I'm the chief finance. The current cash burn is between $5-$6 million per month, so a total of $15 million per quarter. We reduce our cash burn by 90% Q over Q and 25% year over year.
Do you guys anticipate this fall?
Do you anticipate going back to the markets anytime soon?
No. No. No. I just wanted to emphasize we had a large raise recently led by M&G, who Josh just talked about, M&G and Motherson, of $45 million. This is sufficient funding for us to reduce the 60 million order book that you currently have, which gets us to the few hundreds, which gets us to the unit economic positive market, right? So that puts us in a position where we're not anticipating any more diluted funding getting into the funding.
Okay. Yes, sir
When do you expect to start working for the backlog? [audio distortion]
Yeah. We go to production. We're starting end of this year, and we ramp through next year.
Build plan, we had one out there, but since we just signed the deal with Motherson, we're actually going back on that again to actually optimize it further in terms of, obviously, looking at how they can improve the unit economics by using their horsepower. So we're working that. But yeah, the idea is, throughout next year, we grow and we ramp the production next year.
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We'll once we finalize that and publish that probably before the next earnings call, that'll come out. But the idea is to, you know, obviously, go as fast as possible to make sense from a financial standpoint, I'd say.
Yes, sir.
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Sorry?
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Yeah. Currently, they're one of the suppliers of our batteries. Yeah. I mean, the idea, again, like we said, we focus on our IP, which is the corner, right? Part of our success is we're not building our own batteries. There's no need to, right? So the current vehicles we have on the road that you see here driving are using Microvast packs at the moment. Yeah. But we're not, again, power source agnostic. It's important, right? If you think of our vehicle, we've done some intelligent things. Like number one, a lot of people, when they build an EV, they design the pack as part of the structure of the vehicle. So if something goes wrong with the pack or supplier, you know, has a capacity issue, they can't adapt, right? They're down, right? This happened with some of the Proterra vehicles, right?
'Cause now our pack is more designed, almost think like a flashlight, right? We have, so in these vehicles, there's three modules, right? They're Microvast modules, but we could use other batteries, right? We always say we're power source agnostic if we had to, right? As long as it fits in the footprint of the chassis, we can work with that.
Yes, sir.
What does that do to the price of the vehicle?
Sorry?
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Well, no, we are in line with other EVs. So for example, a lot of people ask us, there's four motors, is it more expensive? But if you look, in essence, because we have four motors, we have four times the regen, you know, if between a either four times or double.
If you look to some of the smaller vehicles, we actually have a smaller battery pack, and most of the cost is in the pack. So we put ourselves on par with, you know, around, but it's not adding all that up. We've actually looked at that. So because we have the higher efficiency, we actually can go in a smaller number of batteries. Now, even some of our customers, the base pack that's in these demo vehicles is actually too much range for them. So that's why we've also done it where we can actually pull out a module if we had to, right? Give them actually a little bit cheaper vehicle, up the payload because they don't need the range.
Yes.
Do you have any idea of what percentage of the Penske and U-Haul fleets are using our technology at this point?
Well, right now they're demoing it, right?
Oh, okay.
These are demos. So they, you know, Penske has a vehicle, they're demoing it, and they're, you know, what they do, they take it, and now their customers are driving it, right? So they're in the middle of the demo program now. Same with U-Haul. They're demoing it right now. We actually have been serving the proposition. Anybody else?[audio distortion] . Okay. Thank you, everybody. We'll be around the rest of the day.
If anyone has questions, feel free to look us up, and we can, and if you need anything one-on-one, feel free to reach out. Okay? Thank you. Thank you.